News about revenue growth

JFrog (FROG) rose 193.2% over the five years to October 26, 2026, beating 123 of 126 Application Software peers, where the typical company fell 47.1%. The gain did not come from its industry: the S&P 500 climbed 67.8% over the same period, while the typical Information Technology company fell 21.9%, and application software ranked last of the sector's 12 industries. JFrog's revenue grew 24.3% a year on average over three years, versus 11.1% for the typical application software company, and cloud revenue rose 53% in fiscal Q2 2026. Management raised its 2026 revenue forecast to 22% growth at the midpoint; for the November 2026 report, the article points to revenue of $164 million to $166 million, implying growth of about 20%, down from 28.7% in fiscal Q2 2026.

Docusign (DOCU) closed on October 21, 2026, 73.7% below its September 2021 high, so it would need a 280.5% gain to return there, equal to an annual return of 56.1% over three years. In overlapping three-year windows since April 2018, the stock gained 280.5% or more only 11.6% of the time. Since that 2021 peak, 5.1 years ago, Docusign is down 73.7% while the S&P 500 is up 71.0%, both before dividends. Revenue for the twelve months to July 2026 is 87.3% higher than before the high, and operating margin moved from a loss of 5.9% of revenue to a 12.0% margin. The stock trades at 4.6 times sales, versus 28.1 times at the end of September 2021, when revenue had grown 54.2% in a year compared with 8.6% in the latest twelve months.

The article outlines four traits common to stocks that significantly outperform: strong sales growth, which underpins profits and scale efficiencies; expanding margins, showing better cost control and more profit per dollar of sales; innovation that keeps companies ahead of competitors; and favorable earnings estimate revisions that push stocks higher. Nvidia (NVDA) is cited as an example of both strong sales growth in its Data Center business and AI-driven innovation. It also describes the Zacks Rank, which uses four earnings-estimate factors to sort stocks into five groups, from ‘Strong Buy’ to ‘Strong Sell’.